Big Carbon Buyer emerges
Wednesday 13 Oct 2021
A Ministry for the Environment analysis of the Sept 1 auction outlines some of the broad numbers in the third event of its type. It was notable because it resulted in the $50 ceiling price being crossed and released 7m NZUs in the cost containment reserve (CCR), which meant in all 11.75m were sold.
The clearing price of $53.85 meant the government made $632.7m.
The interim auction monitor report said: “For the first time and as anticipated by the market, the cost containment reserve was triggered. Possibly less expected was that the entire CCR volume was purchased with a consequent increase in the clearance price above the $50 trigger price.”
The report said the ‘interim clearing price’ – which is the price at which the full auction volume would have been sold in the absence of additional volume – was $57.
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